TaxTMI 
TaxTMI 
2014 (6) TMI 303
X X X X Extracts X X X X
X X X X Extracts X X X X
....gs were initiated against the applicant on the ground that they have indulged in irregular availment of cenvat credit on inputs without receiving the input materials or processed materials from the job workers in their factory for the manufacture of finished goods and passed the same purported credit to various consignees on the guise of duty paid on their finished goods. The proceedings of the Department were based on the premise that the Director of the Company submitted a list of job workers and on investigation, it was found that the said job workers were not found to have been engaged by the applicant. The Chartered Engineer who conducted inspection in the presence of Director of the Company, supported the findings of the investigation....
X X X X Extracts X X X X
X X X X Extracts X X X X
....recipients of inputs, have admitted that the transport was arranged by the applicant and the payments were made by the Accounts Payee Cheque. Similarly, the recipient of finished goods also categ orically stated that all the final products were supplied by the notice and the payments were also made by the Account Payee Cheques which shows that the transportations were genuine. The contention is that the report of M/s Devcon Engineers and Valuers are presumptive in nature and therefore, not acceptable. The contention is that the plant and machineries were got inspected by Shri Sital Kr. Banerjee, and the machineries installed were 40 in number, most of which installed in the year 1999 and that all the machines were in excellent good working ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the Chartered Engineers which reads as under: "It is indeed surprising that M/s Ashok Electrical Pvt. Ltd. which is operational for last 15 years and claimed to have achieved that stated production has not been maintaining even daily production reports, incoming and finished goods records, raw material issue, stock statement, employees records/attendance and other statutory records as required by prevailing norms/rules/statutory requirements. Mere installation of machinery does not contribute to regular produc tion unless the machines are properly utilized through a planned manufacturing process and standard sequence of operations including testing and control supported by the proper documentation and records....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ch is self contradictory and this also supports the allegation of the Department regarding absence of job workers. The inspection of Chartered Engineer shows that the machines/machineries are old and rusted, there was very low consumption of electricity, workers as low as five in number and the diesel engine was not operating condition. Admittedly, the\ Director of the Company was present during inspection. Thus, prima-facie, it is revealed that the applicant indulged in irregular availment of cenvat credit on inputs without receiving the input materials or processed materials in their factory for manufa cture of finished goods and passed the same purported credit to various consignees in the guise of duty paid on their finished final produ....